The NYT has reviewed potential global stock exchanges, atleast one of which to win the world's largest-ever IPO, expected bySaudi oil giant Aramco; London Stock Exchange market has plenty ofliquidity and the world's largest Stock Exchange market is that of New York.
The change in Saudi Aramco's top pyramid is another sign that thecompany is moving steadily towards what could be the world's biggest-ever IPO,the NYT said.
The Saudi government on Monday appointed Yasser Al-Rumayyan,49, as chairman of Aramco, the governor of the Public Investment Fund withassets estimated at $320bn after the former Saudi Energy Minister, Khaled Al-Falih.
The change is at the top of Aramco's management pyramid meets someinvestors' observation this year when Aramco sold bonds of $12bn, at its firstentry into stock exchange markets, according to NYT.
Analysts say that Al-Rumayyan,who has spent most of his career as a banker, may introduce a fund-drivenapproach to the company.
Aramco, a year ago, delayed the IPO, with the aim of completing theacquisition of the Public Investment Fund (PIF) stake in Saudi BasicIndustries Corporation (SABIC).
At present, Saudi Aramco needs to decide where to list the company,which is a huge gain for any stock exchange, as the NYT described.
For Aramco, the choice of where to list its shares is, inmany ways, the most important part of the IPO.
Aramco said that it wants to list its shares on both the Saudi Stock ExchangeMarket, Tadawul and one of the major international stock exchange markets.
Tadawul has fortified its technology resources to deal with the hugeamount of trading that Aramco's listing to IPO will bring.
New York Stock Exchange (NYSE):
The New York Stock Exchange is the world's largest stock exchangeby market value, favored by Saudi Arabia for its position. (In 2017, PresidentTrump urged Aramco to choose the NYSE as well.) However, advisers to theIPO cautioned against listing Aramco in the United States for politicalreasons.
London Stock Exchange (LSE):
The London Stock Exchange has plenty of liquidity, and itsexecutives recently contacted Saudi officials as part of a British delegationthat visited Jeddah. The LSE also relaxed rules for state-controlled companies,in what critics called a clear grooming of Aramco. However, continueduncertainty over Britain's withdrawal from the EU may cast a shadow over theLSE opportunities.
Hong Kong Stock Exchange:
The Hong Kong Stock Exchange has changed its rules in ways thatbenefit companies such as Aramco. It also promoted what it calls "KeyLinkage" with mainland China, which helps China's major financialinstitutions to invest in proposals in Hong Kong. But it is feared that theunrest associated with the recent protests may continue, raising questionsabout the stock market's attraction to Aramco.
Tokyo Stock Exchange (TSE):
The third largest stock exchange in the world by market value,after Nasdaq, and Aramco has a number of links with Japan; Tokyois home to SoftBank, the Japanesetechnology giant which is partner with the Saudi PIF in a range ofprojects, especially the technology investment project of SoftBank Vision Fund,which is worth about $100bn.
The company says that Aramco provides about a third ofJapan's crude oil needs, but the Tokyo Stock Exchange does not have the samestatus as the stock exchanges in New York, London and, Hong Kong.
